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3 retailers paying juicy franked dividends

As I noted in an article earlier today, the banks have been the go to place for self-managed super funds (SMSFs) and retail investors for high dividend yields in recent years.

But with their share prices crashing through all-time highs on a regular basis, investors may want to consider three retail companies that can offer juicy fully-franked dividends. With the market – S&P/ASX 200 Index (Index; ^AXJO) (ASX: XJO) paying around 4.2%, investors could generate yields of more than 50% higher.

Myer Holdings Limited (ASX: MYR)

The department store retailer is paying a fully-franked dividend yield of 7.4%, according to Commsec, although dividends may fall this financial year, on the back of lower earnings per share. The retailer is also suffering from increased competition from a wave of international arrivals like ASOS, H&M, Zara and Topshop, not to mention a formidable competitor in David Jones Limited (ASX: DJS). If the company can continue to differentiate its offering, there may be value in this stock at current prices.

RCG Corporation Limited (ASX: RCG)

The owner of Athlete’s Foot shoe stores and the exclusive rights to distribute several well-known fashion brands including Merrell, Saucony and CAT is paying a 6.1% dividend (franked to 75%). Earnings and dividends are expected to grow, and the stock could be a bargain at current prices.

Gale Pacific Ltd (ASX: GAP)

Currently paying a fully-franked dividend yield of over 10%, Gale Pacific has seen its share price crumble – down 22% over the past 12 months, as its largest division, Australasia, has failed to perform. The company, known for its Coolaroo shade sails, is forecasting a better second half, after implementing a number of changes to cut costs and improve performance in this division. That could even see dividends rise.

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Motley Fool writer/analyst Mike King doesn't own shares in any companies mentioned. You can follow Mike on Twitter @TMFKinga

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